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Encouraging regional economic cooperation
Tesfaye Lemma
The Horn of Africa is one of the volatile regions in the continent. Countries in the region have never cooperated for mutual benefit in the old days. However, Ethiopia took the initiative to bring these countries to peaceful cooperation following the overthrow of the military junta particularly Nile Basin countries.
Among all Basin countries the Ethio-Sudan relation is strengthened since the inception of the Grand Ethiopian Renaissance Dam. Firstly, the two countries agreed and have been working together to ensure and maintain peace and stability in the region. As a result, Sudan handed over terrorist groups attempted to cross to Ethiopia via the Sudanese.
The trade and investment cooperation between the two countries is another area of cooperation, which is a significant step in the efforts to realize economic integration of the region.
The two countries have established Ethio-Sudan Technical Advisory Committee in the 1990s and reactivated it in 2013 to enhance cooperation in water and electricity sector between the two sisterly countries, which aimed at information and data sharing, flood mitigation, exchange of experience on power control, distribution, and transmission arrangement.
They have underlined the need for strengthening cooperation between them through continued constructive engagement, data and information exchange. It is believed that these are so critical to the management of water resources in both countries.
They also agreed to develop a free trade zone, and special economic zone, which would further facilitate the bilateral trade and investment. One of the pushing factors for the strong relation between the two countries is the fact that the Sudan has a strong supporting position in Ethiopian development. Its stand on the Grand Ethiopian Renaissance Dam is so clear that it believes any basin country is entitled to equitable use of the Nile waters.
The growing relationship between the two countries is improving from time to time. It is manifested in the ever increasing volume of trade, which reached $322 million in 2011, showing 27 percent annual growth. Besides, he Sudan has expressed its desire to purchase 300 mega watt of electricity from Ethiopia. This is an additional purchase to the 100 mega watt Sudan purchased since 2014. Ethiopia and Sudan recently signaled 13 agreements and an executive program covering numerous areas of cooperation.
In the past decade Sudan and Ethiopia have gone a long way towards paving the way for regional integration and producing a model for the sub-region. The commitment by the political leadership of both countries has achieved important gains in economic integration.
The general agreement signed between Prime Minister Hailemariam Desalegn and President Omar Al-Beshir outlined a framework for further consolidation of economic integration endeavors.
This is one of the significant moves the countries have made. The agreement outlined a number of areas to be given special status in the relationship. These included trade, tourism, investment, intellectual property rights, energy and infrastructure, mining, water, agriculture, the environment and forestry.
In terms of regional integration, the Framework Agreement stipulates provisions that encourage trade promotion through business-to-business relations, and one-stop border services to ease trade flow and movement of people.
In order to address infrastructural problems, one of the major impediments holding back realization of regional integration, the two countries have been jointly working on road network building projects.
The first all-weather road connecting Azezo-Metema-Humera and Port Sudan is now operational. The Ethiopian side of the road connecting the Benishangul Region’s Kurmuk to Sudan’s Kurmuk-Demazen is complete and the Sudanese side is under construction.
Ethiopia is also working on a new road from Gonder-Humera to Lugdi as a new addition to the road network. Fiber optics joining Ethiopia’s internet network through Port Sudan is another infrastructural development connecting the two countries.
Further bilateral agreement for passenger road transport was agreed. The Agreement envisages commercial road passenger transport to be operated to and from the cities of the two countries. A ground-breaking agreement has been signed to study the launch of standard gauge railway transport.
On the Ethiopian side this is expected to commence after 2015, during the second phase of the GTP. The commencement of the railway project will eventually enable Ethiopia to use Sudanese ports. The Framework Agreement commits both countries to jointly study ways that Ethiopia can use Port Sudan more effectively.
The Ethio-Sudan power systems interconnection, inaugurated previously at Gedaref, is also part of the area of infrastructural integration. Increasing border trade is pushing the demand for power up and, given Ethiopia’s huge potential for power development, power integration will be an important part of the integration.
The fact that Ethiopia relies on Sudan for its supply of petroleum makes the energy integration a mutual benefit for the two countries. On the same line, the air service agreement, which allows the national carriers of the two countries to operate in each other’s territory, compliments the road transport and railway plans to boost people-to-people relations and the trade and investment relationship.
In the areas of tourism, agreement was also reached over joint promotional work and over protection of trans-boundary game reserves. Experience-sharing and capacity-building were central elements in the agreements over mining and energy.
The leaders of the two counties firmly reiterated their commitment and determination to consolidate ties and relations between their peoples in all fields.
They expressed their satisfaction over the encouraging progress registered so far in the areas of political, economic and social development cooperation, especially in infrastructural interconnection.
The two countries are entering a new era of stronger economic and social ties leading to regional integration. The preferential trade area and the various elements of legal framework and infrastructural integration all point to the emergence of strong bilateral relation, which can become a model for the region. These situations vividly indicated that the Horn Region is turning to a scenario of economic integration and cooperation from an a rea of conflict and destruction.
